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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Summary of Loans
Loans are stated at the principal amount outstanding net of unearned discounts, unearned income and allowance for loan losses.  Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method.  Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at June 30, 2013 and December 31, 2012 follows (in thousands):

 
June 30,
2013
 
December 31,
2012
Construction and land development
$
22,602

 
$
31,341

Agricultural real estate
95,255

 
86,256

1-4 Family residential properties
186,104

 
186,205

Multifamily residential properties
44,207

 
44,863

Commercial real estate
335,628

 
317,321

Loans secured by real estate
683,796

 
665,986

Agricultural loans
51,864

 
60,948

Commercial and industrial loans
152,955

 
160,193

Consumer loans
15,814

 
16,264

All other loans
9,849

 
8,206

Gross loans
914,278

 
911,597

Less:
 

 
 

Net deferred loan fees, premiums and discounts
533

 
744

Allowance for loan losses
12,131

 
11,776

Net loans
$
901,614

 
$
899,077
Allowance for Loan Losses and Recorded Investment in Loans
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and six-months ended June 30, 2013 and 2012 and for the year ended December 31, 2012 (in thousands):
 
 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential 
Real Estate
 
Consumer
 
Unallocated
 
Total
Three months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
9,341

 
$
417

 
$
719

 
$
422

 
$
1,085

 
$
11,984

Provision charged to expense
40

 
(3
)
 
92

 
(15
)
 
138

 
252

Losses charged off
(98
)
 
—

 
(19
)
 
(51
)
 
—

 
(168
)
Recoveries
21

 
—

 
1

 
41

 
—

 
63

Balance, end of period
$
9,304

 
$
414

 
$
793

 
$
397

 
$
1,223

 
$
12,131

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
439

 
$
—

 
$
—

 
$
—

 
$
—

 
$
439

Collectively evaluated for impairment
$
8,865

 
$
414

 
$
793

 
$
397

 
$
1,223

 
$
11,692

Three months ended June 30, 2012
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of period
$
8,810

 
$
570

 
$
710

 
$
386

 
$
817

 
$
11,293

Provision charged to expense
453

 
76

 
68

 
27

 
(208
)
 
416

Losses charged off
(295
)
 
(12
)
 
(44
)
 
(47
)
 


 
(398
)
Recoveries
39

 
67

 
9

 
29

 


 
144

Balance, end of period
$
9,007

 
$
701

 
$
743

 
$
395

 
$
609

 
$
11,455

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
645

 
$
89

 
$
—

 
$
—

 
$
—

 
$
734

Collectively evaluated for impairment
$
8,362

 
$
612

 
$
743

 
$
395

 
$
609

 
$
10,721

 Six months ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
9,301

 
$
558

 
$
726

 
$
403

 
$
788

 
$
11,776

Provision charged to expense
284

 
(145
)
 
144

 
14

 
435

 
732

Losses charged off
(367
)
 
—

 
(86
)
 
(97
)
 
—

 
(550
)
Recoveries
86

 
1

 
9

 
77

 
—

 
173

Balance, end of period
$
9,304

 
$
414

 
$
793

 
$
397

 
$
1,223

 
$
12,131

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
439

 
$
—

 
$
—

 
$
—

 
$
—

 
$
439

Collectively evaluated for impairment
$
8,865

 
$
414

 
$
793

 
$
397

 
$
1,223

 
$
11,692

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
564,526

 
$
147,218

 
$
188,255

 
$
15,814

 
$
—

 
$
915,813

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,232

 
$
312

 
$
—

 
$
—

 
$
—

 
$
5,544

Collectively evaluated for impairment
$
559,294

 
$
146,906

 
$
188,255

 
$
15,814

 
$
—

 
$
910,269

 

 
Commercial/ Commercial Real Estate
 
Agricultural/ Agricultural Real Estate
 
Residential  Real Estate
 
Consumer
 
Unallocated
 
Total
 Six months ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
$
8,791

 
$
546

 
$
636

 
$
378

 
$
769

 
$
11,120

Provision charged to expense
748

 
100

 
291

 
52

 
(160
)
 
1,031

Losses charged off
(598
)
 
(12
)
 
(205
)
 
(95
)
 
—

 
(910
)
Recoveries
66

 
67

 
21

 
60

 
—

 
214

Balance, end of period
$
9,007

 
$
701

 
$
743

 
$
395

 
$
609

 
$
11,455

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
645

 
$
89

 
$
—

 
$
—

 
$
—

 
$
734

Collectively evaluated for impairment
$
8,362

 
$
612

 
$
743

 
$
395

 
$
609

 
$
10,721

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
517,406

 
$
132,611

 
$
179,577

 
$
15,600

 
$
731

 
$
845,925

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
4,487

 
$
947

 
$
—

 
$
—

 
$
—

 
$
5,434

Collectively evaluated for impairment
$
512,919

 
$
131,664

 
$
179,577

 
$
15,600

 
$
731

 
$
840,491

Year ended December 31, 2012
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

Balance, beginning of year
$
8,791

 
$
546

 
$
636

 
$
378

 
$
769

 
$
11,120

Provision charged to expense
1,979

 
(47
)
 
580

 
116

 
19

 
2,647

Losses charged off
(1,586
)
 
(12
)
 
(524
)
 
(249
)
 
—

 
(2,371
)
Recoveries
117

 
71

 
34

 
158

 
—

 
380

Balance, end of year
$
9,301

 
$
558

 
$
726

 
$
403

 
$
788

 
$
11,776

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
457

 
$
54

 
$
—

 
$
—

 
$
—

 
$
511

Collectively evaluated for impairment
$
8,844

 
$
504

 
$
726

 
$
403

 
$
788

 
$
11,265

Loans:
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
569,717

 
$
145,695

 
$
179,309

 
$
16,066

 
$
278

 
$
911,065

Ending balance:
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
5,334

 
$
1,230

 
$
—

 
$
—

 
$
—

 
$
6,564

Collectively evaluated for impairment
$
564,383

 
$
144,465

 
$
179,309

 
$
16,066

 
$
278

 
$
904,501
Credit Risk Profile of the Company's Loan Portfolio
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans.

The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2013 and December 31, 2012 (in thousands):

 
Construction &
Land Development
 
Agricultural Real Estate
 
1-4 Family Residential
Properties
 
Multifamily Residential
Properties
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Pass
$
18,737

 
$
27,217

 
$
93,283

 
$
82,516

 
$
185,885

 
$
183,880

 
$
44,207

 
$
44,863

Watch
2,099

 
2,135

 
1,225

 
2,662

 
275

 
424

 
—

 
—

Substandard
1,766

 
1,989

 
769

 
1,093

 
2,095

 
2,194

 
—

 
—

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
22,602

 
$
31,341

 
$
95,277

 
$
86,271

 
$
188,255

 
$
186,498

 
$
44,207

 
$
44,863


 
Commercial Real Estate (Nonfarm/Nonresidential)
 
Agricultural Loans
 
Commercial & Industrial Loans
 
Consumer Loans
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Pass
$
308,675

 
$
287,794

 
$
51,111

 
$
56,899

 
$
141,874

 
$
157,461

 
$
15,774

 
$
16,236

Watch
22,636

 
24,213

 
—

 
958

 
10,073

 
1,588

 
—

 
14

Substandard
3,493

 
4,315

 
830

 
3,157

 
1,128

 
1,250

 
40

 
14

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
334,804

 
$
316,322

 
$
51,941

 
$
61,014

 
$
153,075

 
$
160,299

 
$
15,814

 
$
16,264


 
All Other Loans
 
Total Loans
 
2013
 
2012
 
2013
 
2012
Pass
$
9,838

 
$
8,193

 
$
869,384

 
$
865,059

Watch
—

 
—

 
36,308

 
31,994

Substandard
—

 
—

 
10,121

 
14,012

Doubtful
—

 
—

 
—

 
—

Total
$
9,838

 
$
8,193

 
$
915,813

 
$
911,065
Loan Portfolio Aging Analysis
The following table presents the Company’s loan portfolio aging analysis at June 30, 2013 and December 31, 2012 (in thousands): 
 
30-59 days Past Due
 
60-89 days Past Due
 
90 Days
or More Past Due
 
Total
Past Due
 
Current
 
Total Loans Receivable
 
Total Loans > 90 days & Accruing
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
—

 
$
—

 
$
13

 
$
13

 
$
22,589

 
$
22,602

 
$
—

Agricultural real estate
153

 
—

 
103

 
256

 
95,021

 
95,277

 
—

1-4 Family residential properties
523

 
310

 
478

 
1,311

 
186,944

 
188,255

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
44,207

 
44,207

 
—

Commercial real estate
195

 
388

 
215

 
798

 
334,006

 
334,804

 
—

Loans secured by real estate
871

 
698

 
809

 
2,378

 
682,767

 
685,145

 
—

Agricultural loans
50

 
—

 
209

 
259

 
51,682

 
51,941

 
—

Commercial and industrial loans
83

 
254

 
163

 
500

 
152,575

 
153,075

 
—

Consumer loans
81

 
36

 
24

 
141

 
15,673

 
15,814

 
—

All other loans
—

 
—

 
—

 
—

 
9,838

 
9,838

 
—

Total loans
$
1,085

 
$
988

 
$
1,205

 
$
3,278

 
$
912,535

 
$
915,813

 
$
—

December 31, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
—

 
$
53

 
$
—

 
$
53

 
$
31,288

 
$
31,341

 
$
—

Agricultural real estate
592

 
—

 
293

 
885

 
85,386

 
86,271

 
—

1-4 Family residential properties
1,351

 
40

 
944

 
2,335

 
184,163

 
186,498

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
44,863

 
44,863

 
—

Commercial real estate
262

 
911

 
255

 
1,428

 
314,894

 
316,322

 
—

Loans secured by real estate
2,205

 
1,004

 
1,492

 
4,701

 
660,594

 
665,295

 
—

Agricultural loans
—

 
—

 
620

 
620

 
60,394

 
61,014

 
—

Commercial and industrial loans
413

 
275

 
53

 
741

 
159,558

 
160,299

 
—

Consumer loans
119

 
24

 
39

 
182

 
16,082

 
16,264

 
—

All other loans
—

 
—

 
—

 
—

 
8,193

 
8,193

 
—

Total loans
$
2,737

 
$
1,303

 
$
2,204

 
$
6,244

 
$
904,821

 
$
911,065

 
$
—
Impaired Loans
The following tables present impaired loans as of June 30, 2013 and December 31, 2012 (in thousands):

 
June 30, 2013
 
December 31, 2012
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
 
Recorded
Balance
 
Unpaid Principal Balance
 
Specific Allowance
Loans with a specific allowance:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
$
1,408

 
$
2,109

 
$
181

 
$
1,114

 
$
1,529

 
$
295

Agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

1-4 Family residential properties
—

 
—

 
—

 
636

 
723

 
162

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
819

 
819

 
89

 
—

 
—

 
—

Loans secured by real estate
2,227

 
2,928

 
270

 
1,750

 
2,252

 
457

Agricultural loans
—

 
—

 
—

 
310

 
310

 
54

Commercial and industrial loans
812

 
812

 
167

 
—

 
—

 
—

Consumer loans
12

 
12

 
2

 
—

 
—

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,051

 
$
3,752

 
$
439

 
$
2,060

 
$
2,562

 
$
511

Loans without a specific allowance:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
13

 
$
21

 
$
—

 
$
408

 
$
694

 
$
—

Agricultural real estate
216

 
226

 
—

 
418

 
429

 
—

1-4 Family residential properties
1,191

 
1,796

 
—

 
1,269

 
1,792

 
—

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
1,515

 
1,575

 
—

 
2,063

 
2,253

 
—

Loans secured by real estate
2,935

 
3,618

 
—

 
4,158

 
5,168

 
—

Agricultural loans
209

 
209

 
—

 
620

 
1,568

 
—

Commercial and industrial loans
597

 
898

 
—

 
704

 
—

 
—

Consumer loans
44

 
83

 
—

 
51

 
58

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
3,785

 
$
4,808

 
$
—

 
$
5,533

 
$
6,794

 
$
—

Total loans:
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
$
1,421

 
$
2,130

 
$
181

 
$
1,522

 
$
2,223

 
$
295

Agricultural real estate
216

 
226

 
—

 
418

 
429

 
—

1-4 Family residential properties
1,191

 
1,796

 
—

 
1,905

 
2,515

 
162

Multifamily residential properties
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
2,334

 
2,394

 
89

 
2,063

 
2,253

 
—

Loans secured by real estate
5,162

 
6,546

 
270

 
5,908

 
7,420

 
457

Agricultural loans
209

 
209

 
—

 
930

 
1,878

 
54

Commercial and industrial loans
1,409

 
1,710

 
167

 
704

 
—

 
—

Consumer loans
56

 
95

 
2

 
51

 
58

 
—

All other loans
—

 
—

 
—

 
—

 
—

 
—

Total loans
$
6,836

 
$
8,560

 
$
439

 
$
7,593

 
$
9,356

 
$
511
Impaired loans by portfolio class
The following tables present average recorded investment and interest income recognized on impaired loans for the three and six-month periods ended June 30, 2013 and 2012 (in thousands):
 
For the three months ended
 
June 30, 2013
 
June 30, 2012
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
1,425

 
$
—

 
$
1,014

 
$
—

Agricultural real estate
216

 
—

 
206

 
—

1-4 Family residential properties
1,283

 
1

 
1,621

 
—

Multifamily residential properties
—

 
—

 


 
—

Commercial real estate
2,353

 
—

 
2,437

 
7

Loans secured by real estate
5,277

 
1

 
5,278

 
7

Agricultural loans
229

 
—

 
864

 
—

Commercial and industrial loans
1,430

 
—

 
780

 
3

Consumer loans
57

 
1

 
15

 
—

All other loans
—

 
—

 
—

 
—

Total loans
$
6,993

 
$
2

 
$
6,937

 
$
10

 
 
 
 
 
 
 
 
 
For the six months ended
 
June 30, 2013
 
June 30, 2012
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
 
Average Investment
in Impaired Loans
 
Interest Income Recognized
Construction and land development
$
1,445

 
$
—

 
$
1,014

 
$
—

Agricultural real estate
217

 
—

 
206

 
—

1-4 Family residential properties
1,414

 
2

 
1,632

 
—

Multifamily residential properties
—

 
—

 
—

 
—

Commercial real estate
2,389

 
—

 
2,349

 
14

Loans secured by real estate
5,465

 
2

 
5,201

 
14

Agricultural loans
253

 
—

 
883

 
—

Commercial and industrial loans
1,482

 
—

 
834

 
7

Consumer loans
59

 
1

 
17

 
—

All other loans
—

 
—

 
—

 
—

Total loans
$
7,259

 
$
3

 
$
6,935

 
$
21
Nonaccrual Loans
The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2013 and December 31, 2012 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings.

 
June 30,
2013
 
December 31,
2012
Construction and land development
$
1,421

 
$
1,522

Agricultural real estate
216

 
418

1-4 Family residential properties
1,088

 
1,899

Multifamily residential properties
—

 
—

Commercial real estate
2,334

 
2,063

Loans secured by real estate
5,059

 
5,902

Agricultural loans
209

 
930

Commercial and industrial loans
1,409

 
704

Consumer loans
34

 
37

All other loans
—

 
—

Total loans
$
6,711

 
$
7,573
Recorded Balance of Troubled Debt Restructurings
The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2013 and December 31, 2012 (in thousands).

Troubled debt restructurings:
June 30,
2013
 
December 31,
2012
Construction and land development
$
1,409

 
$
1,522

1-4 Family residential properties
511

 
445

Commercial real estate
898

 
950

Loans secured by real estate
2,818

 
2,917

Commercial and industrial loans
446

 
408

Consumer loans
21

 
14

Total
$
3,285

 
$
3,339

Performing troubled debt restructurings:
 

 
 

1-4 Family residential properties
$
103

 
$
6

Commercial real estate
—

 
—

Loans secured by real estate
103

 
6

Commercial and industrial loans
—

 
—

Consumer loans
22

 
14

Total
$
125

 
$
20
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block]
The following table presents loans modified as TDRs during the six months ended June 30, 2013 and 2012, as a result of various modified loan factors (in thousands):

 
June 30, 2013
 
June 30, 2012
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
 
Number of Modifications
 
Recorded Investment
 
Type of Modifications
Construction and land development
—

 
$
—

 

 
3


$
1,014

 
(a)
1-4 Family residential properties
3

 
98

 
(a)(b)(c)
 
2


94

 
(b)
Commercial real estate
—

 
—

 

 
5


296

 
(b)
Loans secured by real estate
3

 
98

 
 
 
10


1,404

 
 
Commercial and industrial loans
1

 
56

 
(a)(b)
 
1


16

 
(a)(b)
Consumer Loans
1

 
8

 
(c)
 
—


—

 

Total
5

 
$
162

 
 
 
11


$
1,420